The Basic Idea of Trade Is to Buy the Things

question 122

True/False

The basic idea of trade is to buy the things you could only make at a high opportunity cost, and sell the things you can make at a low opportunity cost.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that is paid in taxes.

Income

Monetary payment received for work, from investments, or from government benefits, contributing to an individual's wealth.

Marginal Tax Rate

The tax rate applied to the last dollar of income, showing the percentage of additional income that is paid in tax.

Income

The amount of money or value received, typically on a regular basis, for work or through investments.